-the project manager and the project team
They must
- ensure the work is being completed as it was planned,
- follow all the subsidiary project plans such as the Risk Management Plan, the Schedule Management Plan, and the Communications Plan
-the PM must work to control changes across all facets of the project.

NBNB HOW The project plan guides the project manager through the Execution and Control process groups.

It does this by to communicating to the project team, stakeholders, and management how the project will be managed and controlled.

Define for integration - Assumptions

Assumptions are beliefs held to be true, but not proven to be true. Assumptions should be documented in the project plan

Define for integration -Constraints

Constraints are restrictions the project must operate within.

Define for integration -The triple constraint of project management

time, cost, and scope-will visit you on exam day, as will other internal and external constraints. Know how this applies to Risk in the Monitor and Control Project Work phase

Define for integration - Historical INformation

Historical information is a key area of the exam. Historical information is proof from other project managers of successes and failures. Historical information allows the project manager to rely on what has been proven, what has been accomplished, and what has been archived for reference

Define for integration - Integrated Change Control

Integrated Change Control requires evaluation of change requests to determine their worthiness for approval-or lack thereof for denial. Change requests can be written or verbal, internal or external. Change requests can stem from stakeholders or external sources such as government agencies, laws, or industry mandates.

Earned Value Technique

???

PROJECT CHARTER

The project charter is a formal document that brings the project into existence.
- a small document
- NB to getting a project started in the right direction

What are the components of the project charter?

-Formally authorizes the project to begin
-Names the project manager.
-Contains a brief business case showing the justif for the project.

WHo writes the Proj Charter

-Written by Proj Man to define the project as he or she sees it.
-but it must be distributed under the signature of the person who is authorized to create the project and funding for the project

The Project Charter

-Keeps others informed
-Provides an early statement of direction
-Outlines problems and opportunities
-Aids in authorization of Project
-Provides some reassurance to performing organization that they will receive some positive return

The Project Charter does not come from the project sponsor; it comes from a manager outside of the project. On the exam the charter is from Senior Management.
In addition, the Project Charter doesn't launch the project; it names and authorizes the project manager.

- establishes the reason for doing the project
- provides a high-level product description
- Keep referring to this - what should and should not be included.
- provides reasons for and justification of the project deliverables

The project manager and the project team will direct the performance of the planned project activities, and manage the various technical and organizational interfaces that exist within the project.
Defect repair, Corrective and Preventive actions are required components in the PMBOK® Guide’s definition of Direct and Manage Project Execution.

How do they do this?

They will document, measure, and complete the project work outlined in the project plan .

is the term given to the identification, tracking and managing of all the assets of a project;
-It controlls the charicteristics of a product or service (also referred to as deliverables).

What is the todo list of config management

-The documentation of the features, characteristics, and functions of a product or service
-The applied control to restrict changes to the features, characteristics, and function of the product or service
-The process of documenting any changes to the product or service
-The ongoing auditing of products and services to ensure their conformance to documented requirements
-Establishes a method to consistently identify and request changes to established baselines
-To assess the value and effectiveness of changes
-Provides opportunities to continuously validate and improve the project by considering the impact of each change
-Provides the mechanism for the project management team to consistently communicate all changes to the stakeholders.

Configuration management activities included in the integrated change control process are:

-Configuration Id - Providing the basis from which the configuration of products is defined and verified, products and documents are labeled, changes are managed, and accountability is maintained.
-Configuration Status Accounting - Capturing, storing, and accessing configuration information needed to manage products and product information effectively.
-Configuration Verification and Auditing - Establishing that the performance and functional requirements defined in the configuration documentation have been met.

configuration management, think paperwork

that all change must be screened, tracked, accepted, approved, and the development process updated thereafter.

If the primary goal of MONITOR AND CONTROL PROJECT WORK is a status report - how do you do this?

Work and data are analyzed, tracked and reported on. These reports should show progress and provide estimated completion dates or Forecasts.

How are new and existing risks id?d

-All risks should be identified, documented and have a planned response.
-Assessif/when corrective or preventive actions are required and making the appropriate recommendations based on the assessment

How do corrective actions hel?

Corrective actions bring the project work results back into alignment with the project plan, increase project value, and attempt to ensure the project will end on time and on budget.

WHat about changes?

PM is ensuring approved change request become part of the WBS (work packages) and are worked into the project plan updates.

Key areas to monitor or control are:

-Comparing
-Assessing
-Analyzing
-Documenting
-Forecasting

What is the purpose of INTEGRATED CHANGE CONTROL

-coordinating changes across the entire project
-to influence factors that create change so the change is beneficial
-determine when a change has occurred
-manage actual changes when they do occur

Changes come from stake holders - what does a PM need to do with them?

-Evaluate change requests
-Determine whether or not the suggested changes are needed for the successful completion of the project
-Determination if Corrective or Preventive changes have occurred within the project work
-Provide approval or denial of the change
-Provide oversight of the methods for managing changes
-Providing updates concerning changes to the Project management plan and baselines. Any changes to scope, cost, time, risk, and scheduling along with any other attributes of the project plan must be revised and documented. In addition to having the project plan updated, any supporting detail used in the decision to include the change should be included in the project planning supporting detail.

A change control system consists of a formal, documented procedure for handling change, nothing more. On the exam you remember that a change control board is responsible for authorizing or denying the requested change.

What is the close project process

the Close Project process closes out the portion of the project scope and associated activities applicable to a given phase.

What are the two procedures necessary to perform the closure activities

-Administrative Closure Procedure
-Contract Closure Procedure

What is Administrative Closure

procedure details all the activities, interactions, and related roles and responsibilities of the project team members and other stakeholders involved in executing the administrative closure procedure for the project

How do you perform this Administrative Closure Procedure

Do the integrated activities needed to collect project records, analyze project success or failure, gather lessons learned, and archive project information for future use by the organization.

What is the Contract Closure Procedure

Includes all activities and interactions needed to settle and close any contract agreement established for the project, as well as define those related activities supporting the formal administrative closure of the project

-It defines what work is needed
-It determines what is included in the project
-It serves as a guide to determine what work is not needed
-It serves as a point of reference for what is not included in the project

Define project scope

'the processes to ensure that the project includes all of the work required, and only the work required, to complete the project successfully.'

-Product Scope - Features and functions that characterize a product, service or result
-Project Scope - The work that needs to be accomplished to deliver a product, service or result with the specified features and functions

NB Project scope -

- is the ability to get the required work done, and only the required work, to complete the project.
- is measured against the Project Management Plan, Scope Statement, the WBS and WBS Dictionary.
-

NB Product scope

Product Scope is measured against the product requirements. The customer generally provides this information.

process of creating a project scope management plan that documents how the project scope will be defined, verified, controlled, and how the work breakdown structure (WBS) will be created and defined

What is the goal of scope planning process

to create the output of the scope planning process the Project Scope Management Plan

What is SCOPE DEFINITION

Decomposing the major project deliverables into smaller, more manageable components completes scope Definition

Scope definition is

the subdivision of project deliverables into smaller (and more manageable) pieces until you have adequately identified in the work breakdown structure all the work on the project.

Definition of the project scope provides the following three advantages

-Improved accuracy of cost, time, and resource estimates
-A baseline for measuring progress and exercising control
-Clear assignment of responsibility for project tasks

Stake Holder Analysis

It is extremely important for the PM to identify the influence and interests of the various stakeholders and document their needs, wants, and expectations.
-Remember that although stakeholders may be both organizations and people, ultimately the PM must communicate with people

The WBS:
Identifies all the tasks required to complete the project. - NOte

-Serves as the project scope baseline
-Is one of the most important project management tools
-Serves as the foundation for planning, estimating, and project control
-Visualizes the entire project
-Notes that work NOT included in the WBS is NOT part of the project
-Builds team buy-in to the project
-Serves as a control mechanism to keep the project on schedule
-Allows for more accurate cost and time estimates
-Serves as deterrent to scope creep

a functional decomposition of the tasks of the project. The total work of the project is broken down into the major subtasks. It starts with the end objective required and successively subdividing it into manageable components in terms of size and complexity: program, project, system, subsystem, components, tasks, subtasks, and work elements.

WBS Dictionary

If a WBS is extensive and if the category content is not obvious to the project team members, it may be useful to write a WBS dictionary. The WBS dictionary describes what is in each WBS element, and it may also say what is not in an element, if that is unclear

Benefits of using a WBS

-Builds the project team
-Provides a framework to identify projects separately from organizations, accounting systems, funding sources, and so on
-Clarifies responsibilities
-Focuses attention on project objectives
-Forces detailed planning and documentation
-Identifies specific work packages for estimating and assigning work

In the WBS what are the smallest tasks called and what do they do?

These smallest tasks, called Work Packages, must be identified as manageable units that can be planned, budgeted, scheduled, and controlled. The WBS indicates the relationship of the organizational structure to the project objectives and tasks, and so provides a firm basis for planning and controlling the project

NB re WBS

You should know all the benefits and uses of the WBS. Most importantly, you should know that a work breakdown structure is a decomposition of the project work that has to be done. Know the benefits and be familiar with the fact that the WBS contributes to customer communication

SCOPE VERIFICATION

Scope verification is the process of formalizing acceptance of the project scope by the stakeholders. It requires reviewing work products and results to ensure that all were completed correctly and satisfactorily. Scope verification occurs at the end of each project phase, and as part of the project closeout process. Scope verification is concerned with stakeholder Acceptance of the work. Work is sometime denied and must be Re-Worked .

nb re scope verification

Scope verification happens at the end of each project phase-or as major deliverables are created. Scope verification is ensuring that the deliverables the project creates are in alignment with the project scope.

Whats the difference between scope verification and QC

QC is concerned with the correctness of the work. Scope verification and quality control happen in tandem as the quality of the work contributes to scope verification. Poor quality will typically result in scope verification failure

What is the use of scope verification is project gets cancelled

Should a project get cancelled before it has completed the scope, scope verification is measured against the deliverables to the point of the project cancellation. In other words, scope verification measures the accuracy of the work up to the cancellation, not the work that was to be completed after project termination

What is the best tool in SCOPE CONTROL

Integrated Change Control System . Because changes are likely to happen within any project, there must be order to process, document, and manage the changes.

What should the system in scope control aim to include

-Cataloging the documented requests and paperwork
-Tracking the requests through the system
-Determining the required approval levels for varying changes
-Supporting the integrated change control policies of the project
-In instances when the project is performed through a contractual relationship, the scope change control system must map to the requirements of the contract

Uncontrolled change is referred to as Scope Creep - When can this occur

This can occur when the scope of a project is not properly defined, documented, and controlled.

What causes scope creep

-Poor change control
-Lack of proper identification of what products and features are required to bring about the achievement of project objectives in the first place.
-Weak project manager or executive sponsor

Scope control covers issues similar to change control, but it focuses solely on scope changes. What are these changes the result of?

-An external event
-An error or omission when the scope was initially designed
-A value-added change

NB re scope changes

Scope changes may lead to and require changes to cost, time, quality, or other project objectives.

IDsthe deliverables at the lowest level in the work breakdown structure (WBS), which is called the work package.

What is Decomposition

Decomposition is the process of subdividing the project work packages into smaller, more manageable components called schedule activities

Who performs Activity Definition

the Project Team performs Activity Definition.

What is the primary input to activity definition

The primary input to Activity Definition is the WBS

How can you calc the duration for activities

-Expert Judgment
-Analogous estimation of historical data to provide the needed estimate.
-Parametric Estimating model to predict the amount of time for the activities.
-Three Point Estimates (Optimistic, Most likely and Pessimistic)
-Reserve Analysis
-Intentionally incorporating addition time as contingency

What is Activity Resource Estimating

This is the process of estimating how many resources a project team should use to perform project activities

What do you need to know before estimating activity durations

the PM must have a good idea of the quantity and type of resources that will be assigned to each activity.

What nb issues should you consider in estimating resources

-How difficult will it be to complete specific activities on this project?
-What is the organization’s history in doing similar activities?
-Are the required resources available?

What is Bottom-Up Estimating

This is process by which the major deliverables of the project are broken down into smaller tasks until each task can be easily assigned a time value.

What is decomposition

The process of determining the smaller tasks of a project is known as decomposition .

Bottom Up estimating -

-Involve Significant Level of Detail
-Used When Definitive, Detailed Estimates of Effort and Cost are required
-Involves Generating Individual Estimates for Small Units of Work Products
-Summarizing Units of Work to Generate Overall Effort (WBS)
-Used to Determine Project Schedules and Delivery Time Frames

ACTIVITY DURATION ESTIMATING

Duration includes the actual amount of time worked on an activity plus the elapsed time.

Define effort

Effort is the number of workdays or work hours required to complete a task

Does effort = duration

no no no no no

What is duration estimating?

Duration estimating is assessing the number of work periods (hours, days, weeks,) likely to be needed to complete each activity.

What do Duration estimates always include

some indication of the range of possible results,

Activity Duration Estimating

-Perform reality checks on schedules.
-Allow for contingencies.
-Don’t plan for everyone to work at 100 percent capacity all the time.
-Hold progress meetings with stakeholders and be clear and honest in communicating schedule issues.
-Goals are to know the status of the schedule, influence factors that cause schedule changes, determine that the schedule has changed, and manage changes when they occur.
-Tools and techniques include:
-Progress reports.
-A schedule change control system.
-Project management software, including schedule comparison charts, such as the tracking Gantt chart.
-Variance analyses, such as analyzing float or slack.
-Performance management, such as earned value

Analogous Estimates

Analogous estimating means that you use the actual time frame from a pervious, similar project as the basis for estimating the time frame for the current project.
-not for precise estimations

Parametric Estimating

involves using variables from the project description in a mathematical formula to develop an estimate.

Parametric Estimating FORMULA

The formula is simple: the number of units multiplied by the amount of time each unit takes to create equals the total amount of effort needed for development.

What is Three Points estimating

AKA

PERT ( Program Evaluation and Review Technique )

-Optimistic time estimate: an estimate of the minimum time an activity will require.
-Most likely time estimate: an estimate of the normal time an activity will require.
-Pessimistic time estimate: an estimate of the maximum time an activity will require.

How do you calculate PERT

ask the resource for their best, most likely and worst estimates. Add the Pessimistic estimate to four times the most likely, then add the optimistic and divide by six. This gives you your estimate, which is a slightly more balanced view of how long the task or activity is likely to take. The calculation is (P + 4M +O / 6).

Precedence Diagramming Method (PDM)OR Activity-on-Node (AON).

-activities go in boxes called nodes
-boxes are joined by arrows which show relationship and the dependencies

PDM includes four types of dependencies or precedence relationships:

Finish-to-Start
Finish-to-Finish
Start-to-Start
Start-to-Finish

Arrow Diagramming Method

The arrow diagramming method (ADM) is similar to the PDM, except that all dependencies Activities and durations are generally depicted on the arrows. For this reason, the ADM diagram is also called the Arrow-on-Arrow (AOA) diagram.

ADM uses finish-to-start dependencies

and can require the use of “dummy” relationships called dummy activities, which are shown as dashed lines, to define all logical relationships correctly. Since dummy activities are not actual schedule activities (they have no work content), they are given a zero value duration for schedule network analysis purposes

Mandatory dependencies

often involve physical or technological limitations of the work; for example, a prototype must be built before it can be tested

Discretionary dependencies

Also referred to as preferred logic, preferential logic or soft logic and are based on knowledge of best practices within a particular application area.

External dependencies

any input that is needed from another project or source outside the project team.

Free Float -

The amount of time an activity can be delayed without delaying the next scheduled activity's start date

Total Float

The amount of time an activity can be delayed without delaying the project's finish date

Lead

allows an acceleration of the successor activity.

LAG

directs a delay in the successor activity

Float and Slack mean the same thing.

nb

CRITICAL PATH

The critical path is the longest path to completion in the network diagram. Activities on the critical path have no Slack or Float.

NOTE - IF IT IS NOT CRITICAL - IT WILL NOT AFFECT THE END TIME

Critical path refers to the sequence of activities that must be completed on schedule for the entire project to be completed on schedule

How to calc critical path

There is a manual method for calculating the critical path by looking at the earliest start and end dates for every activity starting at the beginning of a project. This is followed by starting at the end of the project and going backward, looking at the latest possible start and end dates for each activity that will allow the project to still complete on time. The difference between the earliest day an activity can start and the latest day it can start (and still finish on schedule) is the activity float. Once you have done this for all activities, look for the sequence of activities from start to end that have zero float. This is the critical path. NB SOFTWARE DOES THIS

What is free float

Free float is a term that is applied to individual activities. It refers to the amount of float in an activity before it delays the next activity.

What is total float

Total float refers to the total amount of float between all activities on all paths. If you have a lot of total float, then you usually have many more options as to how you allocate resources to achieve your due dates, and you have more flexibility if your project gets behind schedule.

The Critical Path May Change

There are many sequences of activities on a project to get from the beginning to the end. There may, in fact, be multiple critical paths, if they all have no float and all lead to the same end date. Usually if there are multiple critical paths, they overlap for many of their activities

Formula

The Forward Pass - EF = ES + Activity Duration

The Backward Pass - LS = LF - Activity Duration

nb

there can be more than one critical path in a project and it is possible for the critical path to change.

nb

Remember there is NO FLOAT in the Critical Path.

PERT/CPM: Differences

Both tools lead to the same end: a critical path and critical activities with slack time equal to zero. The differences between these tools come from how they treat the activity time. PERT treats activity time as a random variable whereas CPM requires a single deterministic time value for each activity. Another difference is that PERT focuses exclusively on the time variable whereas CPM includes the analysis of the Time/Cost Trade-off.

What is CRITICAL CHAIN METHOD

The critical chain is the sequence of both precedence and resource dependent terminal elements that prevents a project from being completed in a shorter time, given finite resources.

The main features that distinguish the critical chain from the critical path are:

-The use of (often implicit) resource dependencies. Implicit means that they are not included in the project network but have to be identified by looking at the resource requirements.
-Lack of search for an optimum solution.

Schedule Compression

-Crashing adds resources to project activities and usually increases cost.
-Fast Tracking allows activities to happen in tandem and usually increases risk.

Approach to Crashing a Schedule

-Compute the critical path.
-Establish an objective total duration.
-Identify the crash time and crash cost for each activity on the critical path.
-Prioritize the activities on the critical path that can be shortened at minimum cost.
-Shorten the highest priority activity by one time period and compare total duration with objective.
-Verify critical path.
Continue activity reduction (Steps 4 and 5) until crash time is reached.
-Select next priority activity and continue reduction (Steps 4-6).

Fast-tracking

Fast tracking involves analyzing the critical path to see which activities could be done in parallel (as opposed to sequential execution). It also involves more aggressive use of such PDM activity relationships as start to start so that subsequent activities can begin before the prior activity has been completed. This “overlapping” also reduces the project schedule. It is similar to crashing in that it usually requires more resources to make it happen

Networks (PERT, CPM, PDM) Diagram

Box to box to box
-Representation of how project activities and events are related
-Identifies critical path, project duration, and activity sequences

Barchart (Gantt Chart)

Blocking off times
-Weak planning tool but effective progress reporting tool
-No logical relationships between or among activities

Milestone Chart

-Shows significant events on the project
-Good for communicating status with customers and upper management
-milestones have zero duration. Milestone charts are good for the high-level perspective. They show significant events.

SCHEDULE CONTROL

time control or project control is about the schedule baseline and any changes that might occur. The schedule baseline is the original, approved project schedule and becomes the standard used to measure schedule performance.

Schedule control is concerned with:

-Determining the current status of the project schedule
-Influencing the factors that create schedule changes
-Determining that the project schedule has changed
-Managing the actual changes as they occur
-Schedule control is a portion of the Integrated Change Control process

Heuristic Scheduling (Rule of Thumb)

Heuristics are rules of thumb or guidelines that have been learned through experience and "trial and error." An example of a heuristic is the PERT process, which has modified some statistical approaches to create a simpler but useful scheduling process; for example, the PERT formula for standard deviation is a heuristic (simple to use but yields good results).

Direct costs - These are costs that attributed directly to the project and cannot be shared with operations or other projects.
Variable costs - Costs that vary depending on the conditions within the project.
Fixed costs - Costs that remain the same throughout the project.
Indirect costs -These costs can be shared across multiple projects that use the same resources—such as training room or piece of equipment.

What is Project Cost Management?

Estimating schedule activity costs involves developing an approximation of the costs of the resources needed to complete each schedule activity. In approximating costs, the estimator considers the possible causes of variation of the cost estimates, including risks.

How is a project completed within the approved budget

Project Cost Management includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.

Cost Estimating

Developing an approximation of the costs of the resources needed to complete project activities

Cost Budgeting

Aggregating the estimated costs of individual activities or work packages to establish a cost baseline.

Cost control

Influencing the factors that create cost variances and controlling changes to the project budget.

NB

Project Cost Management is primarily concerned with the Cost of Resources needed to complete schedule activities. However, Project Cost Management should also consider the effect of project decisions on the cost of using, maintaining, and supporting the product, service, or result of the project.

Schedule activity cost estimates will adhere to a rounding of the data to a prescribed precision (e.g., $100, $1,000), based on the scope of the activities and magnitude of the project, and may include an amount for contingencies.

Units of Measure

Each unit used in measurements is defined, such as staff hours, staff days, week, lump sum, etc., for each of the resources.

Organizational procedures links

The WBS component used for the project cost accounting is called a control account (CA). Each control account is assigned a code or account number that is linked directly to the performing organization’s accounting system. If cost estimates for planning packages are included in the control account, then the method for budgeting planning packages is included.

Control thresholds

Variance thresholds for costs or other indicators (e.g., person-days, volume of product) at designated time points over the duration of the project can be defined to indicate the agreed amount of variation allowed

Descriptions of each of the three cost management processes are documented.

COST ESTIMATING APPROACHES Analogous estimating

Uses similar historical information to predict the cost of the current project. Such estimates are usually performed early in a project and rely on knowledge of the actual cost outcomes from similar projects.

COST ESTIMATING APPROACHES
Parametric modeling

Uses a parameter, such as cost per metric ton, to predict project costs and relies on knowledge of mathematical relationships between two or more characteristics of a project.

Bottom-up estimating

Starts from zero and adds the expenses from bottom-up. Bottom-up cost estimating involves doing detailed cost estimates for project work packages and then aggregating the results up through the cost accounts and higher levels of the WBS in order to arrive at an overall project cost estimate.

Top dowb estimating

Uses a similar project as a cost baseline and factors in current project conditions to predict costs.

Rough Order of Magnitude (ROM) estimates

are approximations without detailed data, often done early in a project when you need a “ballpark guesstimate.” Used in top-down estimates. The range of variance for the estimate can be –50 percent to +100 percent. ROM estimating happens during the initiation phase of a project.

Budget estimate

This estimate is somewhat broad and is used early in the planning processes and also in top-down estimates. The range of variance for the estimate can be –10 percent to +25 percent. Budget estimates are made during early planning processes. Budget estimates are based on slightly better data and are often used to establish initial funding and to gain project approval. The range of accuracy is -10 to +25%

Definitive estimates

This estimate type is one of the most accurate. It is used late in the planning processes and is associated with bottom-up estimating. The range of variance for the estimate can be –5 percent to +10 percent. Definitive estimating h appens during late planning process. Definitive estimates are prepared from well-defined, detailed data. A bottom-up estimate would be an example of a definitive estimate, which is the most accurate (with a range of -5 to +10%).

Supporting detail for the activity cost estimates should include:

-Description of the schedule activity’s project scope of work
-Documentation of the basis for the estimate (i.e., how it was developed)
-Documentation of any assumptions made
-Documentation of any constraints
-Indication of the range of possible estimates (e.g., $10,000 (-10% / +15%) to show that the item is expected to cost between $9,000 and $11,500).

COST BUDGETING

Cost budgeting involves aggregating the estimated costs of individual schedule activities or work packages to establish a total cost baseline for measuring project performance. The project scope statement provides the summary budget. However, schedule activity or work package cost estimates are prepared prior to the detailed budget requests and work authorization.

Cost baseline

A project’s cost baseline shows what the PM expects to spend on the project. It’s usually depicted as an S-curve. The idea of the cost baseline allows the project manager and the host organizations management to predict when the project will be spending money and over what time period.

Project cost control includes:

· Influencing the factors that create changes to the cost baseline

These factors in cost control are

-Ensuring requested changes are agreed upon
-Managing the actual changes when and as they occur
-Assuring that potential cost overruns do not exceed the authorized funding periodically and in total for the project
-Monitoring cost performance to detect and understand variances from the cost baseline
-Recording all appropriate changes accurately against the cost baseline
-Preventing incorrect, inappropriate, or unapproved changes from being included in the reported cost or resource usage
-Informing appropriate stakeholders of approved changes
-Acting to bring expected cost overruns within acceptable limits.

What is earned value management

Earned value management is a project management technique for estimating how a project is doing in terms of its budget and schedule. It compares the work finished so far with the estimates made in the beginning of the project. This gives a measure of how far the project is from completion.

Cost Performance Index

CPI is a value that demonstrates how the project costs are performing. CPI is a value that reveals how much money the project is losing. CPI is a value that shows how the project costs are performing to plan. It relates the work you have accomplished to the amount you have spent to accomplish it

CPI formula

= EV / AC

Schedule Performance Index

SPI is the ratio of work accomplished versus work planned, for a specified time period. The SPI is an efficiency rating for work accomplishment, comparing work accomplished to what should have been accomplished.

Learn and do brain dump prior to exam...

Earned Value
EV = BAC * %Comp

Cost Variance
CV = EV - AC

Schedule Variance
SV = EV - PV

Cost Performance Index
CPI = EV / AC

Schedule Performance Index
SPI = EV / PV

Estimate at completion
EAC = AC / %Comp

Estimate to completion
ETC = EAC – AC

Variance at completion
VAC = BAC – EAC

Cumulative CPI
CPIc = EVc / ACc

Forecasting

Estimating or predicting potential project costs. These figures are based on information and knowledge available at the time the forecast is made.

Cost Performance Reports

These reports focus on project cost performance, project scope, and planned performance versus actual performance. The reports may vary according to stakeholder needs

Estimate at Completion (EAC)

The Estimate at Completion is created using the actual costs of labor and materials to date plus the latest revised estimate for all remaining work. A varied amount of information is used to prepare the EAC, including completed and remaining work scope, schedule variances

Estimate to Completion

The expected cost needed to complete all the remaining work for a schedule activity, work breakdown structure component, or the project

Variance

Variances that cross a given threshold may require the project manager to create a variance report to explain the variance, why it has happened, and what corrective action has been applied to prevent the variance from recurring.

Cost variance (CV)

The cost variance at the end of the project will be the difference between the budget at completion (BAC) and the actual amount spent. Formula: CV= EV – AC

Schedule variance (SV)

Schedule variance will ultimately equal zero when the project is completed because all of the planned values will have been earned. Formula: SV = EV – PV